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Piercing Line Candle Pattern

Piercing Line Bullish XAUUSD Candlestick Patterns

A Piercing Line Candlestick Pattern & Dark Cloud Cover Candle-stick Pattern look alike and similar but the difference is that one occurs at the top of a up trend (Cloud Cover) & the other occurs at the bottom of a downwards trend (Piercing).

Upward Trend Reversal - Dark Cloud Cover Candlesticks

Downward Trend Reversal - Piercing Line Candlesticks

Piercing Line Candlestick

Piercing line is a long black body followed by long white body candlestick.

The white body pierces the mid-point of previous black body.

This is a bullish reversal setup which forms at the bottom of a market downwards xauusd gold trend. It shows that the market opens lower and closes above the mid-point of the black body.

This shows that the force of the down-trend is reducing/decreasing and the price trend is likely to reverse and move in an upwards direction.

This pattern is shown referred to as a piercing line signaling that the market is piercing the bottom illustrating a market floor for the price downward trend.

Piercing Line Candle Pattern - Dark Cloud Cover Candlestick Pattern - Bullish Candles vs Bearish Candlestick

Piercing Line Candle

Analysis Piercing Line Candlestick

A buy trading signal gets confirmed once xauusd price closes above the neck line which is the opening of the candlestick on the left of the Piercing Line candle.

This is a bullish setup & xauusd price should continue moving upward and for one who puts a buy trade position should also place a stop loss order just below the lowest xauusd price level.

Dark Cloud Cover Candlestick

Opposite of piercing candle.

This candlestick is a long white body followed by a long black body.

Black body pierces the mid-point of the prior white body.

This is a bearish reversal pattern that forms at the top of an upwards xauusd gold trend.

It shows that the market opens higher & closes below the mid-point of the white body.

This shows that the momentum of the up trend is reducing/decreasing and the price trend is likely to reverse and move in a downward direction.

This setup is shown known as a cloud cover signifying the cloud as a ceiling for the price upward trend.

Bullish Candle vs Bearish Candles - How to Interpret Dark Cloud Cover Candlesticks Patterns Bullish or Bearish

Dark Cloud Cover Candle

Analysis Dark Cloud Cover Candlestick

A sell signal gets confirmed once xauusd price closes below neckline which is the opening of the candle on the left of this candle.

This is a bearish setup and xauusd price should continue moving downwards and for one who puts a sell trade position should also put a stop loss order just above highest xauusd price level.

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